Tag Archives: USD

Markets Jittery as US Imposes 104% Tariffs on Chinese Imports
Posted on

Market Update: GBP Weakens as Focus Shifts to US and European Developments

With no UK economic data scheduled for the remainder of the week, market attention has turned to key events unfolding in Europe and the United States. Here’s the latest on the factors driving currency movements.

German Industrial Output Rises

In Germany, industrial output for November posted a solid 1.5% increase, rebounding sharply from the -1% decline in October. This improvement highlights signs of recovery in the Eurozone’s largest economy, providing some support to the euro.

US Non-Farm Payrolls in Focus

Markets are looking ahead to tomorrow’s non-farm payrolls report, which is expected to show an increase of 160k jobs. A stronger-than-expected result could solidify GBP/USD trading at a one-year low, reflecting the sustained strength of the US dollar.

Speeches from several Federal Reserve policymakers today may also provide further support to the dollar, which has gained momentum thanks to:

  • Optimism following Trump’s election.
  • The Fed’s projections for rate cuts this year.

GBP/USD Falls Amid UK Economic Challenges

The GBP/USD currency pair has dropped more than 9% since late September, driven by:

  • Soaring UK borrowing costs.
  • Increasing pressure on Chancellor Rachel Reeves, who faces difficult decisions around borrowing, spending cuts, and tax increases—measures likely to weigh on the UK’s economic growth.

The pound has become the worst-performing currency in the G10 this week, with a fierce selloff highlighting investor concerns as we head into the new year.

How Could This Impact Your Business?

The pound’s weakness and the dollar’s continued strength present challenges for businesses involved in international transactions. However, this market volatility also offers opportunities to hedge currency risks and secure competitive rates.

Contact Qumoney’s experts today for bespoke strategies to protect your business and capitalise on these market dynamics.

Market Update: Pound Gains as Key Economic Events Approach
Posted on

Market Update: US Data Boosts Dollar as PMI Revisions Weigh on Europe and UK

Recent economic data underscores the evolving dynamics of global markets, with the US dollar strengthening on the back of positive surprises and a favourable economic outlook.

US Jobless Claims Hit 8-Month Low

The latest US weekly initial jobless claims fell to an eight-month low of 211k, outperforming the forecasted 222k. While seasonality may have influenced the data, it highlights the resilience of the US labour market.

Additionally, the US manufacturing PMI was revised higher for December, contrasting with downward revisions for both the Eurozone and UK PMIs, which remain in contraction territory.

Dollar Dominates Currency Markets

The US dollar strengthened significantly yesterday:

  • Rising 0.8% against the euro.
  • Gaining more than 1% against sterling.

This surge was driven by better-than-expected US data, a stronger GDP outlook, and optimism surrounding the potential policy mix of the Trump administration. These factors have reinforced confidence in the dollar, putting pressure on other major currencies.

What to Watch Today

Markets are now focused on the US manufacturing ISM for December, a key release that could further influence sentiment and currency movements. Meanwhile, remarks by ECB Chief Economist Philip Lane are expected to provide insights into the Eurozone’s economic trajectory and policy direction.

How Could This Impact Your Business?

The stronger dollar and diverging economic conditions highlight the importance of staying informed. Whether you’re managing international payments or navigating currency risks, understanding these trends is essential.

Contact Qumoney’s experts today to discuss tailored strategies to safeguard your business and capitalise on market opportunities.

UK house prices rise, ECB interest rate cut, GBP/USD at 9-month low
Posted on

UK House Prices Rise as Market Dynamics Shift

The latest Nationwide House Price Index reveals a 0.7% increase in UK house prices for December, significantly exceeding the forecasted 0.1%. For the year 2024, UK house prices rose by an impressive 4.7% year-on-year, reflecting renewed strength in the housing market.

Key Drivers Behind the Surge

Several factors contributed to this unexpected jump in house prices:

  • A marginal drop in the headline interest rate.
  • Improved buyer sentiment, fuelled by slowing inflation.

This combination has bolstered demand, driving price growth even as economic uncertainties persist.

Euro Under Pressure as ECB Outlook Weakens

The euro remains under pressure against both the pound and the dollar as the new year begins. Market sentiment reflects expectations of an ECB interest rate cut later this month, further weighing on the euro’s performance in currency markets.

GBP/USD Hits 9-Month Low

As the Bank of England signals a potentially more aggressive approach to interest rate cuts compared to the Federal Reserve, the GBP/USD currency pair is trading at a 9-month low. This divergence in monetary policy outlooks is creating headwinds for the pound, underscoring the challenges ahead for sterling in 2025.

How Could This Impact Your Business?

With fluctuating house prices and diverging monetary policies, businesses need to stay informed and agile. Whether you’re managing currency exposure or navigating the real estate market, preparation is key.

Contact Qumoney’s experts today to explore strategies for capitalising on market opportunities and protecting your financial position as we head into 2025.

Market Update: Quiet Markets as Focus Shifts to PMI Releases
Posted on

Market Outlook: Modest Volatility Amid Limited Economic Data

With the New Year holiday limiting economic data releases, market movements are expected to remain flat, and volatility is likely to be modest. However, ongoing developments in the eurozone, UK, and US are keeping investors on alert.

Euro Declines as Interest Rate Concerns Mount

The euro weakened on Friday against major rivals, marking its fourth consecutive weekly decline. This drop follows concerns over a widening US-eurozone interest rate differential, compounded by cautious remarks from ECB President Christine Lagarde.

Lagarde’s comments have increased the probability of a 0.25% ECB rate hike in January, rising from 55% to 65%, signalling a more cautious approach to monetary policy in the eurozone.

Pound Under Pressure Against the Dollar

The GBP/USD currency pair continues to struggle amid:

  • Flat UK GDP growth in Q3.
  • Mixed retail sales data.
  • Rising public sector borrowing.

These factors, coupled with a strong US dollar, have placed the pound under sustained negative pressure. Without significant changes in economic data or market sentiment, this trend is expected to persist.

Key Takeaway for Businesses

With the euro’s decline and the pound facing headwinds, businesses involved in international trade should stay vigilant. Modest volatility may still present opportunities to hedge currency risks or lock in favourable rates.

Speak to Qumoney’s experts today to explore strategies tailored to your needs, ensuring your business is prepared as markets evolve into 2025.

Market Focus Shifts to US Unemployment & Eurozone Confidence
Posted on

Market Outlook: A Quiet Week with Opportunities for Hedging

With the Christmas period upon us, this week’s economic calendar is light, leading to flat market movements and subdued volatility. However, last week’s developments in monetary policy and currency trends still present key opportunities for businesses and investors.

Pound Recovers After BoE Decision

Last week, the Bank of England’s monetary policy decision created initial headwinds for the pound. A split in the Monetary Policy Committee (MPC)—with 3 out of 9 members voting to cut interest rates—increased expectations of a potential rate cut at the next meeting.

Despite this, the lack of significant economic data this week has allowed the pound to regain ground against both the euro and the dollar, providing a favourable window for businesses to capitalise on its strength.

Why Now is a Great Time to Hedge

The pound’s recovery offers a timely opportunity for forward buying. By locking in a competitive rate now, businesses can:

  • Protect themselves from adverse market movements as we approach 2025.
  • Secure their financial position amid ongoing uncertainties.

Take Action Before Christmas

With markets stabilising in the lead-up to the holiday season, now is the time to consider your currency strategy for the new year.

Contact Qumoney’s experts today to discuss forward buying and hedging opportunities. Protect your business from volatility and secure peace of mind as we head into 2025.

1 … 11 12 13 14 15 … 66